SYDNEY, AUSTRALIA: MA Financial Group Limited (ASX:MAF) will acquire 100% of BNK Banking Corporation‘s mortgage broking aggregator subsidiary, Finsure Holding and related aggregation division subsidiaries for consideration of $151.6 million in cash.

A share sale agreement has been signed between the two parties in this regard. Completion of the proposed transaction is subject to the receipt of regulatory approval and is expected to occur in the first half of 2022.

BNK’s Chairman, Mr Don Koch said the proposed transaction represented a positive outcome for BNK stakeholders.

“The Company previously announced a strategic review to consider all options to maximise value for BNK shareholders. As part of that review, the Board has carefully assessed a range of alternatives, including expressions of interest from a number of parties regarding BNK’s asset portfolio.

“After a detailed assessment, the Board believes the sale of Finsure to MAF represents a compelling outcome for all BNK stakeholders, including shareholders, our people and customers.

“The sale price of $151.6 million cash is an attractive valuation and will deliver significant value to BNK shareholders. The sale price represents a 66% premium to the undisturbed market capitalisation of the Group prior to announcement of the strategic review on 21 September 2021.

“Finsure is a top 4 mortgage broking aggregator with over 2,000 brokers and a national distribution footprint with a market leading technology suite. While Finsure has been growing strongly, the opportunity to be part of MAF, a larger and more diversified financial services group, will accelerate Finsure’s ability to grow its presence in the Australian financial services market.

“MAF is a diversified financial services company with activities in asset management, lending, corporate advisory and equities. MAF has a market capitalisation of around $1.4 billion and over $6 billion in assets under management.

“Following the sale of Finsure, BNK will be a strongly capitalised digital bank with a clear and focused strategy to leverage recent initiatives to strengthen our competitive position.

“These include the origination of specialist loans though our alliance with Goldman Sachs and the prime residential mortgage warehouse program established with Bendigo & Adelaide Bank and Blackstone.

“We continue to make significant progress on transforming our lending business to generate higher returns and post the sale of Finsure we will remain well placed to continue this growth trajectory.

“We will continue to assess options in respect of BNK as part of the ongoing strategic review,” Mr Koch said.”

BNK Banking Corporation Limited (BNK) is a diversified financial services company with two key operating divisions in banking and mortgage broking aggregation. The Company is listed on the Australian Securities Exchange (ASX:BBC).